From Morningstar: 2024-05-17 04:46:00

Money markets give a 60% chance of Bank of England rate cut in June, despite “data dependent” decision. May meeting showed no change in rates at 5.25%, but shift seen since March towards a cut. If rate cut happens, it may not lead to rapid cycle of monetary easing seen in previous years.

Bank of England hinted at potential rate cut in June, a noticeable shift from previous messaging. Governor Bailey mentioned a possible change in June’s Bank rate, a first for the central bank. ECB expected to cut rates in June. Inflation data and job figures will influence decision-making process for rate cuts.

Stock and bond markets adjusting to US inflation data indicating Fed won’t lead global easing. Bank of England not waiting on Fed for rate cut decisions. April inflation data on May 22 showed stronger employment and wage growth, impacting outlook on interest rates. Inflation forecast expected to fall before rising again in 2024.

Potential June rate cut by Bank of England causing mixed reactions. Some experts foresee multiple cuts in a year, while others predict a cautious approach towards rate cuts starting in August. Bank aiming to avoid mistakes in policy adjustments while dealing with ongoing inflation threats.

Upcoming Bank of England meeting on June 20 may reveal more about potential rate cuts. Industry experts divided on whether June or August is more likely for rate cuts. Monetary policy decisions heavily depending on economic data, inflation trends, and global market conditions.



Read more at Morningstar: When Will the Bank of England Cut Interest Rates?